Good day, and welcome to the NetEase First Quarter 2025 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Helen Wu. Please go ahead.

Thank you, operator. Please note that today's discussion will contain forward-looking statements related to the future performance of the company and are intended to qualify for the safe harbor from liability as established by the U.S. Private Securities Litigation Reform Act. Such statements are not guarantees of future performance and are subject to certain risks and uncertainties, assumptions and other factors. Some of those risks are beyond the company's control and could cause actual results to differ materially from those mentioned in today's press release and in this discussion. A general discussion of the risk factors that could affect NetEase's business and financial results is included in certain filings of the company with the Securities and Exchange Commission, including its annual report on Form 20-F, and in announcement and filings on the Hong Kong Stock Exchange website. The company does not take any obligation to update its forward-looking statements, except as required by the law. During today's call, management will also discuss certain non-GAAP financial measures for comparison purposes only. For definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the first quarter 2025 earnings news release issued earlier today. As a reminder, this conference is being recorded. In addition, an investor presentation and a webcast replay of this conference call will be available on the NetEase corporate website at ir.netease.com. Joining us on the call from NetEase senior management are Mr. William Ding, Chief Executive Officer, and Mr. Bill Pang, Vice President of the Corporate Development. I will now turn the call over to Bill, who will read the prepared remarks on William's behalf.

Thank you, Helen, and thank you, everyone, for participating in today's call. Before we begin, I would like to remind everyone that all percentages are based on RMB. We started 2025 with strong momentum. Innovative content and exceptional operations continue to underpin our growth, as we further globalize and diversify our expanding game portfolio. Our total net revenue increased 7% year-over-year. Alongside the success of our new titles, our flagship titles continued to captivate players throughout the first quarter, reaching new record highs after decades of operations. This combination of new hits and long-time fan favorites drove our total revenue from gaming and value-added services up by 12% year-over-year to RMB24.0 billion. Several new titles have recently debuted globally, and more players around the world are embracing our games than ever before. We now have a rich and growing global portfolio of games that spans a range of diverse genres, reinforcing our competitive edge in the dynamic gaming landscape with innovations that elevate our offerings and the industry as a whole. Starting with Marvel Rivals. Its successful launch last December marked a major milestone in our portfolio and a meaningful step forward in our globalization journey. Backed by critically acclaimed gaming experience and dedicated live operations, it has continued to build strong momentum among players worldwide. In the first quarter, player engagement remained high, and the launch of Season 2 in April brought renewed excitement. Themed around Hellfire Gala, a once-a-year celebration of mutant culture and identity, the seasonal update introduced a new map, a new hero and fresh team ops, welcoming both veteran players and newcomers to the Living Island. Following the update, Marvel Rivals reclaimed its #1 position on Steam's global top seller chart. To deepen our connection with the player community, we are moving to a two-month season cadence starting with Season 3, while keeping the momentum high by introducing a new hero each month. With continuous development and iteration, we are committed to delivering a distinctive and evolving gaming experience to players worldwide. Next is FragPunk, our fast-paced five versus five tactical shooter game that has energized global fans with a sleek shooting experience, innovative Shard Cards and bold art expression. Within just three days of its PC launch in March, the game achieved over 110,000 peak concurrent players and became #6 on Steam's global top seller chart. Building on this momentum, we launched Chapter 2 of Season 1 on April 29 with over 70 brand new Shard Cards, along with updated heroes and maps. With the update, FragPunk also debuted on consoles, making the game available to an even broader player base. As we continue pushing the boundaries of the shooter experience with systematic innovation and upgrades, we're also growing the game's community and hope to make FragPunk a one of the leading titles. We also just launched the much-anticipated Once Human mobile edition on April 24. It quickly gained global attention, claiming the top spot on the iOS download chart in more than 160 regions. The optimized handheld experience is highly valued by mobile players as we retain the depth of the PC version while featuring cross-platform play, progression, and rewards. Meanwhile, the mobile launch generated even more community enthusiasm across platforms, driving the game to the #5 spot on Steam's top seller chart. Across PC and mobile, our open-world PvP and PvE phenomena is reaching more users. Where Winds Meet has continued to draw players into its immersive world since its breakout domestic launch in December. Its ability to blend subtle storytelling, a richly layered historical setting and high-fidelity graphics has made Where Winds Meet a game changer in the open world of the Wuxia genre. We added more fresh content on March 28, introducing Hexi, a brand new district set against a stunning desert landscape and attracting a growth of new players. By the end of March, more than 30 million players had joined the community, and player engagement continues to be high, reinforcing the game's long-term potential. We are excited to build on this success and reach more players, with plans to launch the game in more regions across PC, mobile and console platforms later this year. Blizzard titles also demonstrated robust performances, driven by strategically tailoring experiences for local communities. The return of each title in 2024 reignited player enthusiasm, driving engagement to historical highs. This was especially evident by Overwatch, which broke new records of peak concurrent players upon its relaunch on February 19. A brand-new stadium mode was launched in China this April, alongside its global release. In addition, momentum has been ongoing for World of Warcraft and Hearthstone, both of which saw consistent popularity during Chinese New Year with targeted in-game events and localized designs. Notably, World of Warcraft achieved leading sales through live commerce on social media, providing fans with an entertaining experience in a fresh way. Hearthstone came up with culturally resonant content, such as alternative art cards or signature cards inspired by Chinese painting and World of Warcraft Suzhou embroidery-inspired mounts. These creative designs rejuvenated the long-beloved IPs by infusing fresh elements that resonate with players, engaging both long-time fans and new players. In addition, Diablo 3 entered technical testing in April, paving the way for its re-entry into the Chinese market. Together, these successes demonstrate the strength of our operating capabilities and the close collaboration with our partners. Looking ahead, we are excited to bring players even more intriguing content, created and delivered with care by passionate teams and collaborators. As we celebrate the success of our new and returning titles, our established NetEase games continue to play a vital role in our portfolio. Our long-standing beloved titles serve as foundational pillars and steady sources of revenue with ongoing content updates and continuous gameplay enhancements that deliver time-based appeal. The Fantasy Westward Journey franchise is a prime example. After decades of operations, it continues to be one of China's most influential brands. In the first quarter, we celebrated Fantasy Westward Journey mobile's 10th anniversary with a range of new content updates, including a crossover with renowned animation IP Digimon. The update sparked player engagement, signaling a remarkable beginning for its next decade. Westward Journey Online 2, another cherished classic, also maintained healthy traction in the first quarter with festive Chinese New Year events and interactive live streaming that reignited player passion. Another example is our iconic asymmetric battle arena game, Identity V. First introduced to the global market in 2018, the player base greatly expanded in the first quarter, achieving a new quarterly high on top of its record-breaking momentum in 2024. The excitement extended into April, with registered players surpassing 400 million globally during Identity V's seventh anniversary celebration. Similarly, our action-based battle royale game, Naraka: Bladepoint, has built a strong global player base since 2021. The game saw new record revenue in the first quarter with our updated PvE content. Players can now team up and confront formidable villains side by side, adding another layer of play through strategy, skill building and collaboration. Both Identity V Asian Games version and Naraka: Bladepoint have also been named as the official Esports events for the 2026 Aichi-Nagoya Asian Games. Each is the first title in this genre to be included in the Asian Games, marking another breakthrough for domestically developed games on the international stage. Moreover, this veteran title's ability to reach new milestones highlights the strength of our long-term operations, premium content, crossover events, and our increasing strength in esports operations. Moving to Eggy Party. The game further solidified its leadership in the party game genre with robust sequential growth in the first quarter. Excitement lit up Eggy Island on Chinese New Year's Eve, featuring a vibrant lineup of performances. Players jumped into the New Year celebrations, enjoying live entertainment, joining activities with friends and creating a night to remember. The addition of the beloved Chinese animation IP, Calabash Brothers, added another layer of festivity, with Eggy Party attracting over 100 million players and new monthly players reaching a record high. As for our groundbreaking MMO game, Justice Mobile, it continues to raise the bar for innovation. In March, we introduced Starry Dreamland, a virtual amusement park in the heart of the Wuxia-inspired world. Packed with familiar attractions and activities that resonate with the younger generation, this new setting quickly became a hit. Justice Mobile is also pushing technology boundaries. We continue to elevate the gaming experience, adding enhanced interaction with AI-powered NPCs and improved lighting effects through cutting-edge graphic technology. We have also made it easier and more fun for players to get creative. With our upgraded creation system, players can produce their own video clips using in-game animations, complete with custom scripts, capture motions and voiceovers. It's a powerful tool that opens the door to a whole new level of creative expression. Justice Mobile's strong momentum has expanded to more regions since its launch in Hong Kong, Macau, and Taiwan last November, as has our leading basketball game, Dunk City Dynasty. Currently, Dunk City Dynasty is targeting expansion to more regions across the Western market and Southeast Asia in May. Similarly, Racing Master has secured a solid position in Japan, Korea, and Southeast Asia, with the game topping the iOS download chart across multiple regions with each geographic launch. These solid operational metrics are a great indicator of what we can expect in other markets when we bring these titles to more regions. As we work to build on the success of our existing games and introduce them to more players around the world, we have a range of exciting upcoming titles on the way. The new titles in our pipeline will continue to push the envelope of creativity and interaction, elevating our portfolio and the overall gaming experiences we bring to our gaming communities. MARVEL Mystic Mayhem, our superhero team-based tactical RPG, is currently preparing for its official worldwide launch. The closed beta test 2.0 conducted in March sparked massive passion within the community, where we gathered valuable feedback from players to aid in the final touches. With more details to be announced shortly, we eagerly anticipate introducing players to these exciting confrontations on a global scale. Some of our other titles under development include Destiny: Rising, our epic sci-fi RPG shooter game featuring a new adventure set in the alternative Destiny timeline. This one is currently in active development and progressing as planned. Ananta, our highly-anticipated metropolitical RPG, is also deep in development. The game draws on our years of experience in the gaming industry to deliver innovative gameplay shaped by deep player insights. As across our portfolio and pipeline, we're reaching more players through a wider range of genres and expanding our global footprint. We're launching new titles and building on the momentum of our existing hits with updates players love, all while delivering new inspiring experiences that resonate with fans around the world. By continuing to reimagine what's possible in gaming, we help advance the industry as a whole. Our commitment to quality and innovation shapes each area of our business. Looking now at Youdao. With a relentless focus on technology-driven innovation integrated into the user experience and a disciplined effort to foster long-term sustainability, Youdao achieved record high first quarter operating profit, maintaining the profitability momentum of previous quarters. Learning services revenue declined in Q1 as we continue to prioritize core services with strong long-term potential. By focusing on high-demand subjects, we advance quality operations and further strengthen profitability. As a part of this effort, our online intelligent learning platform, Youdao Lingshi, upgraded its college entrance planning system to deliver more seamless and personalized guidance based on individual needs, driving exceptional user engagement and loyalty. By prioritizing AI technology in the development of our products and services, we have seen strong user reception and robust growth in AI subscription sales. Our existing applications continue to evolve, with our dictionary and translation services now delivering industry-leading accuracy and a smooth user experience, powered by our proprietary large language model, Confucius. This model innovatively integrates multiple models and leverages online direct preference optimization during training, which enhances its ability to generate responses that are aligned with users' preferences. This elevated experience has driven increasing engagement in our AI translation services. Youdao's online marketing services remain focused on high-quality growth. In the first quarter, sales from overseas grew sharply, driven by strengthened collaboration with overseas partners and KOLs. We also boosted operational efficiency through advanced technologies. For example, we launched Youdao Magic Box, a video creation tool that simplifies the production of high-quality advertising videos through intuitive inputs, making ad content creation easier and more time-efficient. Our smart devices segment maintained healthy year-over-year growth. Building on our leading position in China's Dictionary Pen market, we continue to bring new innovations to the industry. In the first quarter, we launched Youdao SpaceOne, a next-generation device equipped with a larger screen than dictionary pens and the ability to answer students' open-ended questions in real time, much like a human tutor. Powered by advanced large language models, Youdao SpaceOne can accurately interpret images, respond with natural voice interactions and deliver highly accurate answers across a wide range of school grade levels. As our online businesses continue to explore avenues for delivering meaningful experiences in entertainment and learning, the NetEase family remains committed to enriching people's lives and lifestyles with products and services that consistently impress our users with exceptional quality. Take Yanxuan as an example. The strong commitment to quality and innovation drove another quarter of healthy performance across our core product categories. In the first quarter, our pet products and household cleaning items remained top sellers within their category on major e-commerce platforms. Particularly, the signature product maintained strong momentum, while new releases, such as a limited edition New Year bathroom fragrance, saw strong consumer demand. We were especially delighted that in March, one of our cat food products, specifically formulated to support healthy fur, received the 2025 Pet Orange Dot Award, a notable recognition from the pet industry. Additionally, ESG initiatives are ongoing priorities for NetEase. Earlier today, we published our sixth Annual ESG Report outlining our progress towards sustainable growth, transparency and social responsibility. We believe that technology can both empower and inspire. Through AI-driven innovations, we're redefining entertainment experiences, while modernizing traditional industries for safer, more efficient production. Our business growth reflects the trust our users place in us, further motivating our efforts to serve our communities. While our business has limited environmental impact due to its predominantly online nature, we continue to enhance our carbon reduction efforts across data centers and office campuses to strengthen operational resilience. In 2024, by prioritizing energy-saving measures within our operations, we successfully achieved a 16% reduction in greenhouse gas emissions compared to the previous year. Leading ESG rating organizations have also recognized our progress in sustainability. Notably, MSCI upgraded us from A to AA in this latest assessment, designating NetEase as a leader among 237 companies in the global media and entertainment sector. S&P Global included us in its 2025 Sustainability Yearbook, and Sustainalytics has rated us as a low-risk company for the sixth consecutive year. Each of these honors speaks to the dedication and ESG standards we uphold across our company. As we look to the months ahead, we are encouraged by the global momentum we have established and the breadth of opportunities across our increasingly diversified game portfolio and the broader NetEase family of businesses. With a robust pipeline of new releases, continued global expansion and ongoing enhancement to our most iconic franchises, we are well-positioned to sustain our growth and deepen our connection with players worldwide, creating more value for players, partners and shareholders. That concludes William's comments. I will now provide a brief review of our 2025 first quarter financial results. Given the limited time of today's call, I'll be presenting some abbreviated financial highlights. We encourage you to read through our press release issued earlier today for further details. Total net revenue for the first quarter was RMB28.8 billion or $4.0 billion, representing a 7.4% increase year-over-year. Meanwhile, current contract liabilities were RMB17.7 billion, up 16% quarter-over-quarter. Total net revenue from our games and related VAS was RMB24.0 billion, up 12% year-over-year. Specifically, net revenues from online games were RMB23.5 billion, up 14% quarter-over-quarter and 15% year-over-year. This growth was primarily driven by increased revenue contributions from key PC games, such as newly launched titles, Where Winds Meet and Marvel Rivals, as well as established mobile games like Identity V. Specifically, net revenues for our PC games accounted for approximately 34% of our total online games revenue, representing an increase of 13% quarter-over-quarter and an increase of 85% year-over-year. Youdao's net revenues were RMB1.3 billion, representing declines of 7% year-over-year and 3% quarter-over-quarter. This was primarily due to strategic structural improvement in the learning services segment, which is increasingly focused on high-demand subjects. NetEase Cloud Music's net revenues were RMB1.9 billion, declining 8% from the same period last year, and 1% from the previous quarter. This was primarily due to decreased revenue from social entertainment services. Net revenue for innovative businesses and others was RMB1.6 billion, decreasing by 17% year-over-year and 29% quarter-over-quarter. The decline was mainly due to decreased net revenue from Yanxuan, advertising services, and certain other businesses in this segment. Gross profit for the first quarter of 2025 was RMB18.5 billion, up 9% year-over-year and 14% quarter-over-quarter. This was primarily driven by increased net revenues from online games as mentioned above. Our total gross profit margin was 64.1% in the first quarter compared with 63.4% for the same period in 2024. Specifically, in more detail, gross profit margin for games and related VAS was 68.8% compared with 69.5% in the same period last year. The change was primarily due to fluctuations in product mix. The operating expense for the first quarter was RMB8.0 billion or 28% of our net revenues. Taking a closer look at our cost composition, our selling and marketing expenses as a percentage of total net revenue were 9.4% compared with 15.0% for the same period last year, mainly due to decreased spending on gaming promotions during the quarter. Our R&D expenses as a percentage of total net revenues remained stable year-over-year at 15.2% in the first quarter compared with 15.5% for the same period last year. We remain committed to investing in content creation and product development. The effective tax rate was 15.3% for the first quarter. As a reminder, the effective tax rate is presented on an accrual basis depending on applicable policies and our operations. Our non-GAAP net income attributable to shareholders for the first quarter totaled RMB11.2 billion or US$1.5 billion, up 32% year-over-year. Non-GAAP basic earnings per ADS for the quarter was US$2.44 or US$0.49 per share. Additionally, our cash position remains robust with net cash of approximately RMB137.0 billion as of March 31, 2025, compared with RMB131.5 billion at the end of 2024. In accordance with our dividend policy, we are pleased to report that our Board of Directors has approved a dividend of US$0.135 per share or US$0.675 per ADS. Lastly, under our current US$5 billion share repurchase program, which started in mid-January of 2023, we had repurchased approximately 21.6 million ADS as of March 31, 2025, for a total cost of approximately US$1.9 billion. Thank you for your attention. We would now like to open the call to your questions. Operator, please.

Thank you. Your first question comes from Miranda Zhuang with Bank of America. Please go ahead.

Thank you for taking my question. I would like to ask about Identity V. This game performed consistently well throughout last year and is currently one of the company's top games. Can management explain the reasons for its success and how we should view its growth moving forward as the comparison base becomes higher? Also, are there any implications for the revival of your other games? Thank you.

Thank you for your question. You're correct that Identity V, being a unique asymmetric PvP game, has been around for six years. Throughout this time, we have continually invested in, optimized, and improved the game. As a result, it has not only achieved great success in China but also holds a leading position in Japan. Our other teams have learned significantly from the Identity V team's hands-on experience in improving operations and optimizing our other games. Looking ahead, we will continue to allocate more resources to Identity V to expand the enjoyment of asymmetric PvP to a wider audience. Thank you.

Your next question comes from Lincoln Kong with Goldman Sachs. Please go ahead.

Thank you to the management for answering my question. My question is regarding Marvel Rivals. We've observed some fluctuations in user numbers over the past few months. How should we approach ensuring the longevity of this intellectual property? I understand that management is considering shortening the season length and introducing new heroes and characters more frequently. Should we anticipate further changes to the long-term operation and monetization strategy moving forward? Thank you.

Thank you for your question. As you highlighted, we introduced the season two update in April, which gained significant popularity among players and led to notable growth in our operating metrics. With season-based products, it's typical to see variations in operating metrics that correspond with the timing of seasonal updates. This approach will also help strengthen our user base. Starting with season three, we will shorten the seasonal update interval from three months to two months. Additionally, we will kick off the Marvel Rivals Esports event in May to enhance our Esports ecosystem. We believe that with more efficient content updates and our evolving Esports framework, we will experience steady improvement across all in-game metrics. Thank you.

Your next question comes from Felix Liu with UBS. Please go ahead.

Thank you, management, for taking my question. Congratulations on the strong results and the impressive performance of Marvel Rivals and FragPunk. Could management share their thoughts on the latest strategy for overseas markets, taking into account the strong performance of your domestically developed games and the recent shutdowns of some overseas studios? Thank you.

Thank you for your questions. We have long focused on the overseas market, including Europe, North America, Japan, and Korea. Recently, we did close some of our overseas studios, but these decisions were strictly based on the future positioning of our products and the quality we aim to maintain. Since last December, our domestically made games, FragPunk and Marvel Rivals, have indeed performed well in overseas markets, which aligns with our assessments and plans for these markets. We believe that NetEase will continue to develop more games that cater to the global market in the future. Thank you.

Your next question comes from Yang Liu with Morgan Stanley. Please go ahead.

Let me provide the translation. Winds Meet received positive feedback and improved monetization. What strategies has NetEase implemented that have been effective? What are the next steps for this title's operation? Thank you.

Thank you for your question. Where Winds Meet is a game we developed over five years, set in an open-world format against an Asian Chinese historical backdrop. Upon its release in late December last year, it received significant acclaim from users. We prioritize this game as it holds great importance to us. Moving forward, we will continue to invest in it to enhance the art and gameplay. It is intended to be a long-term title for us. We encourage players to experience it on PC for superior graphics. The success of Where Winds Meet has given us valuable insights that we will apply to other products to ensure their success. We believe that, within the next five to ten years, Where Winds Meet will become one of our enduring titles. Thank you.

Your next question comes from Ritchie Sun with HSBC. Please go ahead.

Thank you to the management for addressing my questions. Congratulations on a strong quarter. I would like to ask about Once Human. The mobile version has performed well in terms of downloads, but its monetization seems quite conservative. How does management evaluate the performance and potential of Once Human? What are its key competitive advantages and unique features? What are the plans to enhance its commercialization moving forward? Thank you.

Thank you for your question. The launch of Once Human Mobile was very successful, reaching top download positions in 166 regions on iOS. In its first week, we attracted over 6 million new users. Concerning its performance on the top grossing chart, the game is a cross-play title, allowing players to use the same account on PC or mobile. Many of the top players engage with both platforms, often favoring PC. Following the mobile launch, we observed a 90% increase in concurrent users on PC and a 500% rise in payments. PC accounts for over 50% of total payments, which explains the rise in Steam rankings post-launch. The game stands out due to its script-based, seasonal gameplay design, differentiating it from other SOC-type games. Moving forward, we plan to introduce new gameplay modes to meet user demand for PvE exploration and PvP battles. We are also looking into how we can accommodate SOC players’ requests for private servers to enhance their gaming experience. Thank you.

Your next question comes from Yang Liu with Morgan Stanley. Please go ahead.

Let me translate that. FragPunk's popularity decreased more rapidly after its launch. What actions can NetEase take to better differentiate FragPunk in the international FPS game market? Thank you.

Thank you for your question. FragPunk was developed by a new team, and from their perspective, we are pleased with its performance thus far. The game has a robust foundation and is innovative. The card system allows for quick updates and changes to gameplay modes. We have been communicating to the team the importance of staying connected with the market and continuously refreshing the game while looking for opportunities to expand gameplay. We are dedicated to supporting this product long-term to ensure sustainable operations. To achieve this, we encourage the team to create a strong, stable environment that allows them the time and space to develop. From a market operations standpoint, we will keep investing in international markets, maintaining visibility through tournaments, partnerships with influencers, and other crossover IP events. This strategy will help us retain our loyal player base while pursuing new opportunities. Thank you.

The next question comes from Thomas Chong with Jefferies. Please go ahead.

Thank you to management for addressing my question. I would like to ask about resource allocation. Could management provide insights on how resources will be allocated in domestic and international markets over the next few years? Thank you.

From NetEase's perspective, we believe we have sufficient resources to operate in both the domestic and overseas markets simultaneously. Throughout our 20-year history in this business, we have accumulated a wealth of tools to train and develop our talent. While we have shortcomings, such as understanding the demands of overseas gamers, we are continually working to improve. However, from a resource allocation and execution perspective, we do possess adequate resources for both markets. Thank you.

Your next question comes from Xueqing Zhang with CICC International Corporation. Please go ahead.

Thank you, management, for addressing my questions, and congratulations on a strong quarter. I have two questions. First, regarding your new titles, we've seen several perform well. What key metrics do you prioritize during product development and approval? How should we expect the pipeline to look in the next one to two years? My second question is about Esports. Congratulations on Identity V and Naraka being selected for the 2026 Asian Games for the first time. Do you have plans to use this opportunity to expand international Esports operations? What is the long-term strategy for your Esports games? Thank you.

Thank you for your question. Over the past 25 years, we have gained valuable experience, tools, and talent, and our teams are dedicated to gaming. When we consider new projects, we focus on the core team's passion for gaming and the specific projects they propose, along with their track record for execution. If these conditions are met, we evaluate the product ideas actively. We also have an internal evaluation system, and in the future, we plan to open this platform to more gaming enthusiasts outside the company who want to share their ideas. Regarding our upcoming pipeline, we have several exciting products that are yet to be announced. Thank you for showing interest in our products in the Asian Games. We have invested significant attention in Esports over time. The inclusion of two of our products reflects not only their quality but also the gaming community surrounding these titles. We aspire to have our self-developed games featured in prestigious Esports events like the Olympic Games. As for our Esports operations, we operate the largest Esports stadium in Hangzhou and continue to host tournaments there. We also have a private Esports stadium in Shanghai, one of the largest in the region. We are committed to advancing our Esports operations over the long term. Thank you. Lastly, operator, we have time for one more question.

Thank you. Your final question comes from Alicia Yap with Citigroup. Please go ahead.

Thank you, management, for addressing my questions. With AI's assistance, it appears that game studios can quickly produce content updates and reduce the overall development time for expansion packs. How might this influence NetEase's timing for releasing expansion packs and targeting game promotion as AI becomes a more significant component of game development and publishing? Thank you.

Thank you for your question. We have been using AI in our game development and player experience for at least five years. Over this time, we have consistently invested in technologies, including AI. Many of these advancements have been incorporated into our game development and content production. We view AI as an industry-wide trend rather than something tied to individual companies. The adoption of AI technology will be widespread across the industry, though the application will vary among companies. I want to reiterate that AI is crucial not only for gaming but also for many other sectors. Thank you.

And that concludes the question-and-answer session. I would like to turn the conference back over to Helen Wu for any additional or closing comments.

Thank you once again for joining us today. If you have any further questions, please feel free to contact us directly. Have a nice day. Goodbye.